ATR with MACD Scalping System For MT4
Table Of Contents:
- ATR with MACD Scalping System For MT4
- The ATR with MACD Scalping System For MT4 – Long positions
- The ATR with MACD Scalping System For MT4 – Short positions
- Is the ATR with MACD Scalping System For MT4 profitable?
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The ATR with MACD Scalping System For MT4 is a rather incomplete trading strategy. Contrary to the name, one cannot find the MACD indicator in this trading system. All you have left with is just the ATR, or the average true range indicator.
The average true range indicator or ATR for short, is an oscillator that is used for measuring the average range off the price action. Using this indicator, traders can find out when volatility is rising or falling. Therefore, this indicator allows traders to identify potential sharp movements in the markets. Going by the title of this article, the moving average convergence divergence indicator is supposed to indicate the market direction and momentum.
Therefore, a combination of both these indicators offers traders the chance to capture potentially strong market movements. However, besides the fact that the ATR with MACD scalping strategy is missing the MACD indicator, there are no indicators on the price chart. As a result, traders are left red just price. We recommend the traders code customize this trading system by adding either moving averages, or Bollinger bands indicator.
It would also help, if traders added the intraday pivot points indicator as well. These pivot point indicators will serve as potential take profit or entry for your trades. Considering all the above, you can now see that the ATR with MACD scalping strategy is not a complete trading system in itself. However, for the sake of clarity, we will try to define the trading rules simply based on the average true range indicator.
Trader should bear in mind that the trading signals defined in this article do not always result in a winning trade. There is quite a bit of subjectivity involved. Therefore, you should not blindly trade based off the trading rules defined in this article. As we also mentioned, you should try adding additional indicators in order to make this a more complete trading system. Any trader who has some trading experience, would know that you should never trade based off the signals from just one indicator.
The trading signals that we outlined in this article should be used in conjunction with the other indicators that we have mentioned. This will ensure that you are able to get a full picture of the market rather than using just one indicator for trading. Given the current setup, it is also advisable to pay focus on the chart patterns that form. This will help to ensure that your trading bias is validated.
Let's now take a look at how you can trade long and short positions using the ATR with MACD scalping strategy for MT4.
The ATR with MACD Scalping System For MT4 – Long positions
In order to take a long position using the ATR with MA CD scalping strategy, we should look for price to post a short term low. The previous trend should therefore be to the downside. Following this, wait for a few sessions so that price action is trading flat near the lows.
When you see such a pattern emerging, you should then prepare to take a long position. Now look to the average true range indicator. Typically, this indicator will be trading near the lows. Now look to the price action that is forming on the charts. In the above example you can see a near double bottom pattern that is forming.
You can now take place a long position at the swing high that has formed. Set your stop loss to the low that formed previously, near the double bottom pattern. After this, you can then calculate your risk to reward ratio. Alternately, depending on the trend strength we would advise that you keep part of your position open in order to ride out the trend. This will ensure that you are able to maximize your profits when the market is moving in a strong trend.
The ATR with MACD Scalping System For MT4 – Short positions
In order to take a short position in the market using the ATR with MACD scalping strategy, you should look for price action to be trading near the highs. This means that the previous trend should be to the upside. Following this, look for a few sessions where price action is trading flat near the top. Here, you should not see any new highs being formed.
Now, identify the swing low point that formed during this uptrend near the top. Then place your pending short order at this low. Identify the recent high which forms and place your take profit level near this price point. With your entry and stop loss levels, calculate the risk to reward ratio and set your take profit level accordingly. As we mentioned earlier, you should leave part of your position open in order to ride out the trend. This will be beneficial for you to capture maximum profits when price is in a strong downtrend.
Last but not the least, you should also focus on how the average true range indicator is positioned. Typically, this indicator will be plotting near the Heights. Once you begin to see that the average true range indicator is sloping lower this can confirm your downside bias.
Is the ATR with MACD Scalping System For MT4 profitable?
In conclusion, the ATR with MACD scalping strategy is an incomplete trading system that can be ignored. Readers can choose to customize this indicator further by adding the missing indicators. However, this would make this trading strategy to become very customized. There for the results might vary from one trading setup to another.
If you are out there looking for a proper trading system, then the ATR with MSCD scalping strategy is not the trading system for you. There is nothing unique about this and it makes use of the standard indicators. Anyone with a bit of experience can easily build this trading system on their own. As a result, we do not recommend that anyone should be using this incomplete trading system.
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